The Bangalore Development Authority (BDA) has also addressed a public outcry about the steep penalties that are imposed on vacant residential plots. Allottees who do not construct a house within five years of allotment shall pay a penalty of 10% of their current guidance value in order to have a sale deed or e-khata.
To ensure fairness in this regard, the BDA administration, headed by Commissioner P. Manivannan, has begun to adopt a more rational fee framework, due to the widespread non-compliance and pressure from the outside.
The Proposed New Penalty Rates
Instead of a uniform 10% charge, the BDA is considering a size-based slab system for developers, where there will be no more than 20 sites of similar size (in ft) under penalties:
| Plot Size (in feet) | Proposed Penalty Rate |
| 20 x 30 | 2.5% of Guidance Value + Interest |
| 30 x 40 | 5.0% of Guidance Value + Interest |
| 40 x 60 | 7.5% of Guidance Value + Interest |
| 50 x 80 and above | 10.0% of Guidance Value + Interest |
The 68,000 vacant sites challenge
The BDA has accumulated data showing that there are around 68,000 vacant plots across 64 BDA-developed layouts. Even though the BDA purchases land from farmers at compensatory rates to offer low-cost housing, many allottees consider these plots as long-term investments, not affordable homes. Empty plots have become a nuisance for neighbors and can quickly become dumping grounds or overgrown thickets. The BDA is seeking to combat that “speculative holding” through construction schedules.
Legal Implications and Sale Deeds
Current regulations provide that if a house does not appear within that time frame, the BDA is technically entitled to resume the site by deducting 12.5% of the allotment cost and refunding the balance. But since many plots were held for 20–30 years, the BDA now prefers to regularize these through penalties as opposed to repossession. The BDA is seizing this moment to acquire the revised penalties as owners scramble to secure the e-khatas and final Sale Deeds. "The aim is to drive habitation with these layouts.
Where are the Vacant Plots?
As newer layouts like Nadaprabhu Kempegowda and Arkavathy are still being developed, thousands of vacant sites are still located in existing locations like:
- Jayanagar & BTM Layout
- Banashankari & Anjanapura
- HSR Layout & Koramangala
- Indiranagar & HAL
- HBR Layout & Nagarbhavi
Of 68,000 vacant sites, almost 20,000 are still entangled with myriad legal litigations, complicating the BDA’s stock management even more.
